What are the conditions for persons rendering insurance agent services? What are the obligations of insurance agents in Vietnam?
- What are the conditions for persons rendering insurance agent services in Vietnam?
- What are the obligations of insurance agents in Vietnam?
- Vietnam: If persons have obtained certificates of practising in the insurance agent business sector, but have not operated in the insurance agent business sector, is it possible to continue to operate as insurance agents?
What are the conditions for persons rendering insurance agent services in Vietnam?
Pursuant to the provisions of Article 125 of the Law on Insurance Business 2022, the conditions for operating insurance agents are prescribed as follows:
A person rendering insurance agent services must:
- be a Vietnamese citizen permanently residing in Vietnam;
- have full civil capacity;
- hold the certificate of practising as an insurance agent conforming to Article 130 of the Law on Insurance Business 2022.
In addition, for entity rendering insurance agent services, the following conditions must be met:
- be licensed or permitted for their establishment and operation in Vietnam;
- obtain registration for their scope of insurance agent services under the regulatory provisions of the Corporate Law.
As for any entity engaged in conditional business sectors and industries, a license, certificate and other approval or certification document (if any) containing information about permission for insurance agent services that is issued by a competent agency shall be needed;
- be staffed by employees directly rendering insurance agent services that meet the conditions specified in clause 1 of this Article;
- meet personnel and other conditions under the Government’s regulations.
What are the conditions for persons rendering insurance agent services? What are the obligations of insurance agents in Vietnam?
What are the obligations of insurance agents in Vietnam?
Pursuant to the provisions of Article 129 of the Law on Insurance Business 2022, it is stipulated as follows:
Rights and obligations of insurance agents
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2. Insurance agents shall take on the following obligations:
a) Discharge their contractual obligations;
b) Provide security deposit or collateral on behalf of insurance companies, branches of non-life insurance companies and mutuals providing microinsurance products if this obligation is prescribed in an insurance agent agreement;
c) Fulfill financial obligations in accordance with law;
d) Provide insurance product consulting, offering and marketing services; provide full and accurate information about insurance products, insurance companies, branches of non-life insurance companies or mutuals providing microinsurance products to policyholders and give clear and comprehensive explanations about insurance benefits, disclaimer clauses, rights and obligations of policyholders; avoid providing information for policyholders without approval from policyholders; implement other obligations falling within the scope of authorization specified in insurance agent agreements;
dd) Participate in training and knowledge updating sessions designed for insurance companies, branches of non-life insurance companies and mutuals providing microinsurance products;
e) Submit to the inspection and supervision by insurance companies, branches of non-life insurance companies or mutuals providing microinsurance products;
g) Refund insurance companies, branches of foreign non-life insurance companies or mutuals providing microinsurance products sums that they have paid as insurance indemnities or coverage to insured persons or policyholders in the event that insurance agents or staff members of entities rendering insurance agent services are in breach of insurance agent agreements, causing loss or damage to legitimate rights and interests of these insured persons or policyholders;
h) Adhere to eligibility standards for operation of insurance agents that are set by insurance companies, branches of non-life insurance companies and mutuals providing microinsurance products;
i) Protect client privacy and personal information of clients; use client’s information to serve permitted purposes; avoid providing information for any third party without client's consent, except as provided in law;
k) Take on other obligations prescribed by law.
Thus, insurance agents must perform the obligations according to the content of the above regulations.
Vietnam: If persons have obtained certificates of practising in the insurance agent business sector, but have not operated in the insurance agent business sector, is it possible to continue to operate as insurance agents?
Pursuant to the provisions of Article 127 of the Law on Insurance Business 2022, it is stipulated as follows:
Operating principles of insurance agents
1. Persons cannot be insurance agents for other insurance companies or branches of foreign non-life insurance companies operating in the business lines or sectors that are the same as those in which the principal insurance companies or branches of foreign non-life insurance companies for which these persons are acting as agents are performing transactions. A person acting as an insurance agent for a mutual providing microinsurance products shall not be allowed to act as the insurance agent for the other mutual providing microinsurance products.
2. An entity cannot be an insurance agent for the other insurance company or branch of a foreign non-life insurance company or mutual providing microinsurance products without the written approval from the insurance company, branch of the foreign non-life insurance company or mutual providing microinsurance products for which that entity is acting as the agent.
3. Persons rendering insurance agent services or employees of entities doing insurance agent business can only render insurance agent services for insurance schemes or products in which they are trained.
4. Biodata about persons rendering insurance agent services and staff members of entities rendering insurance agent services that are directly involved in insurance agent services must be registered and updated in the database of insurance agent services according to Article 11 herein.
5. Persons that have obtained certificates of practising in the insurance agent business sector, but have not operated in the insurance agent business sector, during 03 consecutive years must take tests to obtain new ones before commencement of the insurance agent services.
According to the above regulations, persons that have obtained certificates of practising in the insurance agent business sector, but have not operated in the insurance agent business sector, during 03 consecutive years must take tests to obtain new ones before commencement of the insurance agent services.
Therefore, persons will still be able to operate as an insurance agent, however, due to being inactive for a long time, they must take tests to obtain new ones before commencement of the insurance agent services
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